ATLANTA - FLEETCOR Technologies, Inc. (NYSE: FLT), a global business payments company, has announced an amendment to its existing credit facilities that increases its financial capacity by $600 million. The amendment, which did not alter the leverage ratio, expanded the company's Revolver A credit facility from $1.5 billion to $1.775 billion and increased its Term Loan A facility by $325 million. The additional funds from the Term Loan A were used to pay down the revolver balance.
The company's chairman and CEO, Ron Clarke, expressed satisfaction with the amendment, highlighting the strong demand and broad participation in the credit facility. This reflects the company's robust balance sheet and consistent generation of significant free cash flow, according to Tom Panther, FLEETCOR's CFO.
This financial restructuring is intended to support FLEETCOR's strategic plans for 2024, which include potential mergers and acquisitions (M&A) and the repurchase of FLEETCOR stock to drive earnings growth.
The transaction was facilitated by Bank of America (NYSE:BAC), N.A. as the Administrative Agent, with BOFA Securities, Inc., PNC Capital Markets, LLC, TD (TSX:TD) Securities (USA) LLC, and Wells Fargo (NYSE:WFC) Securities, LLC serving as Joint Lead Arrangers and Joint Bookrunners. Other financial institutions also played roles, including Fifth Third Bank, National Association, BMO (TSX:BMO) Bank N.A., The Bank of Nova Scotia (TSX:BNS), and Citizens Bank, N.A. as Co-Documentation Agents, and Barclays (LON:BARC) Bank, PLC, Citibank, N.A., and JP Morgan Chase (NYSE:JPM) Bank, N.A. as Co-Managing Agents.
The announcement also contains forward-looking statements regarding FLEETCOR's expectations for future performance. These statements are based on current estimates and assumptions and are subject to various risks and uncertainties. As such, actual results may differ materially from these projections.
This news is based on a press release statement from FLEETCOR Technologies, Inc. and does not include any speculative content or endorsement of the company's claims. The information provided is intended to offer a factual report on the company's recent amendment to its credit facilities and its potential impact on future growth strategies.
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